Definition of Quality is Conformance to Specifications


"Fitness for Use" is different than Quality in that -


A Quality product may not be fit for use in that the latter deals with specification adequacy, not product conformance to that specification


Quality has costs associated with its attainment (or lack thereof)


The "Cost of Quality" (Crosby) is the cost of doing things wrong (examples?)


Failure Costs

Detection Costs

Prevention Costs


Customer relations

Product liability

Field service and warranty costs

Product returns


Downtime due to defects

Engineering change orders

Purchasing change orders






Process capability measurement (e.g. control charts, SPC)

Product acceptance

Prototype inspection and testing

Receiving inspection and testing

Supplier surveillance

Work-in-process and finished goods testing and inspection

Design reviews

Engineering drawing checks

Engineering quality orientation program

Engineering specifications reviews

Preventive maintenance

Process capability studies

Product qualification

Quality audits

Quality orientation programs

Supplier evaluations

Supplier quality seminars

Tool and machine control

Worker training and cross-training


Effective Quality Programs result in "Cost Avoidance" to the firm


Improving Quality can occur only when everyone - Top Down, is involved


The Goal of Zero Defects should be sought


       Everyone produces to goal or change the process so that they do


       Watchword is "Do it right the first time"



Zero Defects vs. traditional views of quality standards:  Zero Defects implies striving for perfection which, although normally not attainable, promotes continuous process improvement by eliminating identified defects.


 “Root Cause Analysis” determines cause of defects so that effective corrective action can be taken.


Deming (14 Points)

Crosby (14 Steps)

Juran (10 Steps)

1.   Create constancy of purpose for improvement of product and service

2.   Adopt the new philosophy

3.   Cease dependence on inspection to achieve quality

4.   End practice of awarding business on the basis of the price tag alone

5.   Improve constantly and forever every process for planning, production, service

6.   Institute OJT

7.   Adopt and institute leadership

8.   Drive out fear

9.   Breakdown barriers between staff areas

10.  Eliminate slogans, exhortations, and targets for the work force

11.  Eliminate numerical quotas for the work force and numerical goals for management

12.  Remove barriers that rob people of workmanship; eliminate the annual rating or merit system

13.  Institute a vigorous program of education and self improvement for everyone

14.  Put everybody in the company to work to accomplish the transformation

1.   Make is clear that management is committed to quality

2.   Form quality improvement teams represented by each department

3.   Determine where current and potential quality problems lie

4.   Evaluate the cost of quality and explain its use as a management tool

5.   Raise the quality awareness and personal concern of all employees

6.   Take actions to correct problems identified through each previous step

7.   Establish a committee for the zero-defects program

8.   Train supervisors to actively carry out their part of the quality improvement program

9.   Hold a “zero-defects” day to let all employees realize that there has been a change

10.  Encourage individuals to establish improvement goals for themselves and their groups

11.  Encourage employees to communicate perceived obstacles to management

12.  Recognize and appreciate those who participate

13.  Establish quality councils to communicate on a regular basis

14.  Do it all over again

1.   Build awareness of the need and opportunity for improvement

2.   Set goals for improvement

3.    Organize to reach the goals: Establish quality council Identify problems

Select projects                         Appoint teams                    Designate facilitators

4.   Provide training

5.   Carry out projects to solve problems

6.   Report progress

7.   Give recognition

8.   Communicate results

9.   Keep score

10.  Maintain momentum by making annual improvement part of the regular systems and processes of the company     


Phillip Crosby maintains that "Quality is Free" and that the lowest costs result from doing it right the first time


Crosby’s 14 point program is somewhat in conflict with Deming’s  slogans, celebration days are encouraged - more charismatic than Deming’s scientific approaches)


       Negative impacts (costs) of not having quality programs that work include:


       Scrap, Rework, Repair costs, negative customer relations


In a quality conscious company, defects are not a cause for blame, but for action


Over time, costs are lowered as quality programs take effect


“Quality is Free” because quality improvements can significantly increase profits by eliminating/reducing the “Cost of Quality” (which Crosby estimates averages 15% in most companies, with 5% or less being an attainable goal).


Deming’s 14 Points


Malcom Baldrige Award


(TQM attempts to embody these principles during its implementation)


Making Quality Happen


Traditional role of Inspection has been de-emphasized in favor of:



       Process Control Improvements


Questions to answer:


       Is Product Design Adequate?


       Is the Process Adequate?


       Are Surveillance techniques [Inspection levels] compatible with desired outcome?


       AQL:  100% vs. none vs. acceptance sampling (Acceptable Quality Level vs. Rejectable Quality Level, 95% / 5%) - Reciprocals of each other


Deming's view:  Management is responsible for 85% of Quality problems -



(Problems in Design, Manufacturing, Engineering, Training, Purchasing, Customer Order Processing)


Draw/Discuss the “Envelope of Quality” a “variable” control chart (vice “attribute” control chart which measures defects rather than measurable units like the “variable control chart” does


Table TS-2:  Discuss QC in various production operations


Evaluation of a Quality Program:




Policies, i.e. Defined responsibility, authority of personnel assigned QA functions

Management review and commitment


Sufficient resources (personnel, budget, etc.)


Initial Planning:


Review requirements (specification review)

Identify special controls, processes, equipment, skills required

Determine documentation, report flow, integration within Org.

(Marketing, Engineering, Purchasing, Receiving, Manufacturing, Shipping)



Review Work Instructions for -




Contribution to desired level of quality


Develop Responsive Corrective Action Programs (Post Detection Actions) -


Correction of work instructions

Vendor analysis and corrective action (jointly with vendors)

Improved technical data packages to vendors

Analysis of scrap, rework, repair data (internally and externally caused) to determine root causes of defects, costs of quality trend analysis

Introduce improvements and corrections



Standards and Drawings -


Do procedures exist for maintaining currentness, adequacy?

Control over changes, configuration control


Evaluation of a Quality Program (continued):


Adequacy/Availability of Test Equipment?


Control Over Purchases


Source selection and vendor qualification

Vendor quality level is your quality level

Ongoing vendor evaluation programs

Feedback, correction of identified non-conformance's


In-Process Inspection at Critical Points During Manufacture (or Service)


(Critical points are established based upon their ability to impact quality)


Completed Item Testing and Evaluation



End item inspection/tear down

Performance validation/verification


Handling of Materials (Storage, Delivery) to Preserve Quality, Minimize Damage and Loss


Disposition of Non-Conforming Vendor Supplies Material


Information System to Provide Feedback


Internal to Identify Faulty Processes, Causes of Non-Conforming Product


External to Identify Defective Items Getting to Customers)




JIT Elements Relating to Purchasing include:


Quality and Conformance (more important than price) -

Emphasis shifting from lowest price to lowest cost characteristics of -





Long term supplier/relationships are encouraged

(although average in U.S. is only 1-2 years)


Some "Sole or Single Source" Contracts may be necessary, however, at least two vendors supplying materials may be wise to keep competition viable (primary and alternate supplier)


Formal vendor evaluation/certification programs imperative in JIT


JIT is characterized by frequent deliveries of small quantities directly to point of consumption on factory floor


Once vendors are certified, little or no incoming inspection is needed


Vendors are involved in production decisions, i.e. scheduling, needs and materials determination


JIT Purchasing can become an excuse to take advantage of vendors when firms MM and other management practices are at fault (i.e. faulty planning, design, marketing forecasting, etc.)


True Just In Time Production Lowers Everyone's Inventory - How?



Traditional vs. Just In Time concepts:


JIT Manufacturing Philosophy

1.  It costs money to make quality products

2.  Engineers and managers are experts.  Workers serve their needs

3.  Mistakes are inevitable and have to be inspected out

4.  Inventory is useful - it keeps production rolling along

5.  Lot sizes should be economic


6.  Queues of work-in-process are needed to be sure that machine utilization stays high


7.  Automation is valued because it drives labor out of the product

8.  Cost reduction comes by driving labor out of the product and by having high machine utilization.  High rates of production are valued

9.  Materials should be coordinated and pushed out into the factory


10.  You get flexibility at a cost - excess capacity






11.  Overhead functions are essential


12.  Labor is a variable cost

13.  Machines are sprinters, and pulled hamstrings are to be expected

14.  Procure from multiple suppliers

15.  Expediting and work around are ways of life

16.  Work means getting your hands dirty


17.  Quick and dirty often has to be “good enough” 

1.  Quality is free

2.  Workers are experts.  Managers and engineers serve them

3.  Mistakes are treasures, the study of which leads to process improvement

4.  Inventory is evil - it hides problems that should be allowed to surface

5.  Lot sizes should be small, preferably one

6.  Once in motion, always in motion.  Production should be just in time; there should be no queues of work-in-process


7.  Automation is valued because it facilitates consistent quality

8.  Cost reduction comes by speeding the product through the factory.  Quick throughput times are valued


9.  Materials should be pulled through the factory


10.  Flexibility comes from contracting all lead times - factory throughput times, vendor lead times, new product development cycles, order entry and production planning cycles, engineering change order lead times, and other lead-times-to-change

11.  Any labor that does not directly add value to the product is waste

12.  Labor is a fixed cost

13.  Machines are marathon runners, slow but steady and always able to run

14.  Procure from a single supplier

15.  Expediting and work around are sins


16.  Buddha and Confucius like things clean

17.  Patience is more than its own reward


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